Investment in Global

3 Months Ended

Mar. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Investment in Global

(4)          INVESTMENT IN GLOBAL

Our non-current available for sale investment consists of our ownership of approximately 35% of Global’s outstanding ordinary shares. At March 31, 2014 and December 31, 2013, our investment in Global was equal to the market value of Global’s ordinary shares as follows (in thousands, except for closing price and exchange rate amounts):

	March 31, 2014		December 31, 2013
Shares of Global Stock Held by HKN		12,462		12,462
Closing Price of Global Stock	£	0.72	£	0.94
Foreign Currency Exchange Rate		1.6673		1.6574
Market Value of Investment in Global	$	14,856	$	19,312

The foreign currency translation adjustment of approximately $93 thousand and the unrealized loss on investment of $4.6 million for the changes in market value between the two periods were recorded to other comprehensive income in stockholders’ equity during the three months ended March 31, 2014.

Our policy is to review our investment in Global semi-annually or more often if any indicators of impairment become known. We continuously monitor macroeconomic indicators and track Global’s stock price volatility for any downward trends in the market. We also review public financial information including Global’s issued financial statements and investor presentations, as well as financial analysts’ reviews and recommendations for any indicators of an other than temporary impairment in our carrying value. Additionally, we monitor public reports regarding the reserves in Colombia’s Middle Magdalena basin in which Global operates. We also assess internally our ability and intent to hold our investment in Global should the fair value drop below our cost. Any resulting other than temporary impairment would be immediately recognized in earnings. We have not recognized any such impairment as of March 31, 2014. We currently have a cumulative unrealized gain position on our investment in Global of $4.4 million.